Traders awaiting either side breakout
For bulls, 57,700 would be key breakout level to watch, above which, it could move up to 58,000-58,200; on flip side, sharp correction wave possible if index succeed to trade below 57,000, below which, it could slip till 56,500-56,200
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Mumbai: The benchmark indices witnessed profit booking at higher levels, the Sensex was down by 390 points. Among Sectors, Banking and financial stocks lost the most while some buying was seen in selective media and healthcare stocks.
"Technically, currently the index is witnessing range bound activity. On the lower side, it consistently taking support near 200 day SMA (Simple Moving Average) or 57,000. At the same time, it is facing strong resistance at 57,700. We are of the view that, the current market texture is non-directional, perhaps traders are waiting for either side breakout," says Shrikant Chouhan of Kotak Securities.
For the bulls now, 57,700 would be the key breakout level to watch. Above which, the index could move up to 58,000-58,200. On the flip side, sharp correction wave possible if the index succeed to trade below 57,000. Below which, it could slip till 56,500-56,200.
Stock Picks
ICICI BANK: Stock has breached last 12 weeks support line for the first time and also closed below 5-10 day average with heavy volumes. Stock can be short for targets of Rs810, stop loss Rs871.
Maruti: Stock rallied for the first half of the day but it closed below last week lows with heavy volumes and also closed below 15 day average. Stock can be short with stop loss of Rs8780, Targets Rs8400.
- (Source: Kush Ghodasara)
